Kentucky License Law

In Kentucky, 'net listing' is an arrangement where the seller receives a fixed amount and the agent keeps the surplus. This arrangement:

AIs commonly used in Kentucky for rural properties
BCreates a conflict of interest and is generally disfavored or discouraged✓ Correct
CIs encouraged by KREC for complicated transactions
DIs required to be registered with KREC

Explanation

Net listings create an inherent conflict of interest because the agent benefits from a higher sale price at the seller's expense. They are generally disfavored, and in some states discouraged. In Kentucky, they are strongly discouraged.

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